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Zacks Market Edge Highlights: Walmart, Amazon, Netflix, Spotify and Facebook

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For Immediate Release

Chicago, IL – July 26, 2018 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/313371/how-investors-can-tap-into-indias-economic-boom)

How Investors Can Tap into India’s Economic Boom

Welcome to Episode #139 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Neena Mishra, Zacks Director of ETF Research and host of her own podcast called the ETF Spotlight, to talk about India’s hot economy and growing middle class.

How can investors get in on that trade?

Tracey and Neena focused on stocks, not ETFs.

They also only looked at American companies, which were easily accessible to investors on the New York Stock Exchange of the NASDAQ markets.

The Fastest Growing Economy in the World

India’s GDP growth rate has overtaken China’s over the last several quarters. The IMF has forecast GDP growth of 7.4% for 2018 and 7.8% in 2019.

This rate of growth makes it the fastest growing economy in the world.

Yet its middle class, which some say runs between 300 and 400 million, still does not have the buying power to be a purveyor of most international brands.

But many American brands are betting their investments will pay off further down the road. 

Who has taken the lead on investing in India?

5 Companies Looking to India for Growth

1.       Walmart ((WMT - Free Report) recently announced it was buying India’s Flipkart for $16 billion. This deal is still waiting for regulatory approval and there have been some protests by small traders, who make up the vast majority of shop owners in the country. But it makes Walmart a major online player in the country.

2.       Amazon ((AMZN - Free Report) has been opening up distribution facilities and expanding its online shopping network for several years. It is spending $5 billion in the country and has about 30% of the e-commerce market. In addition, it also offers streaming video and music through Amazon Prime.

3.       Netflix ((NFLX - Free Report) entered India in 2016 but its first India-specific show, called Sacred Games, finally launched to much fanfare. Will it create enough buzz for Indians to shell out $10 a month for the streaming service? That’s a high price in a country where the top 1% of all earnings make $20,000. But Netflix has had success in Central and South America, especially as it expanded local programming. India could be a huge opportunity.

4.       Spotify ((SPOT - Free Report) ) said earlier in the year that it was targeting India as one of its expansion markets. While many Indians now stream music, not many are actually paying to do so. Can Spotify break through and become the first truly global streaming company?

5.       Facebook (had over 240 million users in India in 2017. Many of them also use WhatsApp. India has the second largest smartphone market in the world and Facebook is one of the dominant players on those phones. WhatsApp is free but Facebook is close to launching a peer-to-peer payment system on it. Recently, the Indian government delayed the launch as it seeks clarification on a few of the details.

There are other players also looking to India for growth including Alphabet, with its millions of Android phones already in use, and Apple, which is selling the iPhone in the country.

What else should you know about investing in India’s growth story?

Find out on this week’s podcast.

[In full disclosure, Tracey owns shares of AMZN, GOOGL, and FB in her personal portfolio.]

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Tracey Ryniec manages the Insider Trader and Value Investor portfolios at Zacks.com. She hosts 2 weekly podcasts: Zacks Market Edge Podcastand theValue Investor Podcast. You can also catch her on Twitter at@TraceyRyniec.

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